Concerns Over Currencies of Resource-Rich Nations Following the Taliban’s Takeover of Kabul

Concerns Over Currencies of Resource-Rich Nations Following the Taliban’s Takeover of Kabul

16.08.2021

Last weekend, the three major U.S. stock indices all rose slightly, resulting in a market environment characterized by rising stock prices, falling interest rates, and a weaker U.S. dollar. WTI crude oil continued to decline and is currently trading around $67.50 per barrel. Crude oil is being sold off amid growing uncertainty about the U.S. economy following reports that the Taliban, an anti-government militant group in Afghanistan, seized control of the capital, Kabul, yesterday.

The foreign exchange market is generally trending toward a stronger yen, with the AUD/JPY pair falling from 80.87 to 80.25.The Australian dollar has been the weakest currency during today’s Asian trading session. From a technical perspective, if it breaks below the recent low of 80.1, there is a possibility it could fall below the key level of 80.00 and drop to 79.8, so traders should monitor price movements closely. Additionally, the Canadian dollar/yen pair is also falling sharply and is currently trading around 87.26.

Today’s economic indicators include Turkish home sales at 4:00 PM, Canadian manufacturing sales and wholesale sales, and the U.S. New York Fed Manufacturing Index at 9:30 PM, Canadian existing home sales at 10:00 PM, and U.S. net long-term flows of investment in U.S. securities at 11:00 PM.We will carefully assess whether significant volatility will emerge at the start of the week, keeping geopolitical risks in mind.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 13.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 07.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran